The former will make modest improvement as you gain better insights whilst the latter offers magnitude changes of 10 or more. It's that rapid acceleration in performance, customer experience improvement, speed of execution combined with lower unit costs that will identify future market leaders. The catch is- you can't leapfrog the first stage.

"Even as traditional insurers continue to operate within their existing models, there is an immediate need for them to modernise and digitise. For instance, our partnership with PingAn Insurance allows them to enhance and drive efficiencies to their existing processes and products via our latest technology services, such as AI-as-a-Service and Blockchain-as-a-Service."

Chen Wein

It is not enough to add a micro-insurance product here and a mobile app there. Incumbent insures are constrained by complex and inflexible core systems but you can wrap digital platforms around these to get the best digitised value-chain without throwing out the core systems baby with the bathwater.

Insurance distribution evolving

"While traditional insurers are digitising and empowering their agents with various technology tools, the fact is that distribution fundamentally remains agency-driven." Hoe Seng Asia Insurance Review

Chen Wei says "I foresee that in the next five years, both AI and agency will eventually merge to form a hybrid “AI-Agent” distribution model once traditional insurers are finally able to fully digitise and migrate their business to the digital world."

Blockchain and AI enablers of economies and ecosystems

Blockchain is more likely to thrive with micro-insurance where transient customers purchase cover for discreet events and gig-economy activities. Trust and cost of transaction are critical success factors for which blockchain is promoted as the ideal solution though there are clouds on the horizon. That may account for 20% of insurance but 80% will be between regular customers and macro-insurance providers for which centralised single digital records are better.

Once the massive data volumes required are accessible and analysable AI will make a significant impact across the enterprise and customer base. This will enable the future ecosystems that grow via strategic partnerships by all participants in the new smart and connected worlds of customers.

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The innovation culture needs to be embedded into every department, and every employee should be empowered to drive innovation using tech. This is what will shape and determine the future of organisations – the ability to innovate on an enterprise level without having an innovation arm.